Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semtech (Nasdaq:SMTC) -- Ignore unavailable to you. Want to Upgrade?

To: Stu Bishop who wrote (708)	12/3/1998 2:22:00 AM
From: Jeff Bond	Read Replies (1) \| Respond to of 1225

Stu, Now there's a blast from the past :o) You gotta decide, and I recall every painful detail of last falls plummet. The questions I might pose to you are these: 1. Last year was the end of an industry wide run, do you consider this the case today? 2. PE of 25? Why, when SMTC has demonstrated leadership lately in the industry? Doesn't that sound sort of low to you? 3. I stated I could see earnings around $1.20 pretty easy. My expectation is for higher, but I'd need to see what happens next quarter first. As an aside, consensus earnings estimate is $1.10, so we're already getting closer. Why do you think SMTC will not be able to grow earnings, in lieu of how many new design wins they have secured? 4. What impact do you think the closing of Corpus Christi plant will have on gross margins? The move was SPECIFICALLY made to address that very issue. 5. Are your financial aspirations long-term or short-term? If short-term, maybe you would be best served to consider your options at this point. If long-term, don't you think the momentum, the moving average crossover, the beginning of a new industry up cycle, the growth of gross margins, the securing of so many new design wins, the inevitable return of ATE as a contributor, the HUGE growth in cash these past quarters, the well timed acquisitions for long-term growth, etc. weigh in favor of just holding on? In other words, you just lasted 14 rounds with Mike Tyson, and now in the 15th round when you actually scored some shots in the 14th round, you are asking if maybe you should toss in the towel? I understand your dilemna, and you know how similar our positions are, but I see it the exact OPPOSITE at this point in time. I am EXCITED about the next 2 years for SMTC Stu, I think the best is yet to come :o) Just my thoughts, but I have done a lot of homework on this one, so I hope I understand the issues well enough to make an educated choice. Best to you whatever you decide Stu, good seeing you as well :o) Regards, JB